Friday saw gold futures rising amid concerns about the daunting tasks ahead of Greece and Italy's new rulers, according to Reuters.
CNN reports Lucas Papademos was slated to take the oath of office in Greece on Friday morning after a tumultuous week that saw George Papandreou resign midway through his four-year term as prime minister. Formerly a vice president of the European Central Bank, Papademos will have to craft a national unity government in preparation for dealing with damages wrought by the sovereign debt crisis.
"It is still unclear whether a new government in Italy will be able to successfully consolidate its budget without external help. Gold should therefore continue to profit from the persisting high uncertainty," states a note from Commerzbank, according to Reuters.
At 8:23 a.m. on Friday, gold futures climbed 0.8 percent, a $14.10 increase to $1,773.70 per troy ounce.
Investors are likely to return to gold as a safe haven for wealth in light of administration changes in another nation victimized by the sovereign debt crisis. Italy also is looking to a new prime minister following the resignation of Silvio Berlusconi after 17 years in office. Though no one has been tapped, Bloomberg reports former European Union competition chief Mario Monti is the front-runner.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
